If your IRS transcript shows IRS Code 570, it means the IRS has placed a temporary hold on your refund while it reviews specific details on your return.
IRS Code 570 does not indicate an error or penalty; it signals a verification step tied to income, credits, or account history. This situation creates uncertainty because your refund timeline becomes unclear.
In this blog, we will break down what IRS Code 570 means, why it appears, how it impacts your refund, and exactly what actions you should take next to stay in control of the process.
Understand What IRS Code 570 Means
IRS code 570 is officially called "Additional Liability Pending or Credit Hold." The IRS places it when your return needs a closer look before your refund is released. It is temporary. It does not mean your refund gets cancelled. Millions of filers see this code every year, and most receive their full refund once the review ends.
The 570 IRS code means that the IRS paused your refund processing. Your return is still active in the IRS system. The hold sits between your return being filed and your refund being approved.
Why the IRS Places Code 570 on a Tax Transcript
The IRS 570 transcript code appears when the IRS automated system detects something that requires verification. The IRS does not manually flag your return before this code posts. It happens automatically.
Specific reasons the IRS places IRS Code 570:
- Your reported income does not match the W-2 or 1099 data filed by your employer or bank
- You claimed EITC, Child Tax Credit, or American Opportunity Credit, all of which require extra eligibility checks
- You carry an unpaid balance from a prior tax year
- The IRS flagged a potential identity concern on your account
- Math errors or missing data triggered an automated review on your return
The IRS does not print the exact reason on your transcript. You see the code, a freeze date, and a $0.00 amount. That is all the transcript shows.
Learn How Code 570 Appears on an IRS Transcript
Code 570 on the IRS transcript shows up in the Transactions section of your IRS account transcript. It lists as a four-digit code with a cycle date to the right and a dollar amount, usually $0.00. The date beside it is the freeze date, not your refund date.
The IRS transcript code 570 typically appears after code 150, which confirms your return has been processed, and before code 846, which means your refund has been released.
Access your account transcript by logging into IRS.gov and selecting the relevant tax year under Tax Records.
Where to Find Code 570 on Your IRS Transcript
Sign in to your IRS online account at IRS.gov. Go to Tax Records, then View Tax Records. Select Account Transcript and choose the correct tax year. Scroll to the Transactions section. The IRS 570 transcript code appears there as a line item. If code 971 follows immediately below it, the IRS mailed you a notice about your return.
How IRS Transcript Codes Work During Refund Processing
Every IRS transcript code has a four-digit code on your account transcript is one action the IRS took, logged automatically with a date.
The standard sequence during refund processing looks like this:
- Code 150: Return received and posted to IRS records
- Code 570: Refund hold placed pending review
- Code 971: IRS mailed a notice to your address on file
- Code 846: Refund approved and sent
The IRS processing codes transcript system works like an activity log. Every step the IRS takes on your account gets a code and a date. Code 570 is not the final step. Code 846 is. The IRS transcript refund codes update every week, typically overnight Wednesday into Thursday. Checking weekly is the most efficient way to track your status.
Know the Common Reasons for IRS 570 Transcript Code
Code 570 tax transcripts break into two main categories: income-related discrepancies and credit-related holds. The IRS system cross-checks your return against W-2 data from employers, 1099 data from financial institutions, and prior-year IRS records.
When the numbers do not align, the IRS account transcript codes system flags it automatically before any refund is released. Identifying which category applies to you helps you gather the right documents quickly if the IRS sends a notice.
Income Verification or Return Review
The IRS receives income data directly from employers and banks before you even file. When your return shows different figures, the IRS 570 transcript code triggers on your account automatically.
Common income-related causes:
- Your employer reported different wage amounts than what you entered on your 1040
- Freelance income on a 1099-NEC did not match what you reported on Schedule C
- You did not include a 1099-INT from a savings or investment account
- Social Security Administration wage records conflicted with your return figures
The IRS wants confirmation before sending money. In most income mismatch cases, no action is needed unless the IRS sends a notice.
Tax Credit Verification or Refund Hold
Tax credits carry a higher fraud risk, so the IRS applies a tax transcript refund hold before releasing money tied to EITC, ACTC, or education credits. The IRS refund hold code 570 is especially common for EITC filers. Under the PATH Act, the IRS legally holds EITC and Additional Child Tax Credit refunds until at least mid-February every year, regardless of when you filed.
The IRS review code 570 for credits resolves once the IRS confirms you qualify. You do not need to call or submit documents unless the IRS requests them via a CP05 or 4464C notice.
Understand How Code 570 Affects Your Tax Refund
An IRS code 570 refund delay means your refund is paused, not denied. The IRS does not reduce your refund automatically because of this code. Most people with a code 570 refund review on their transcript receive their full refund once the hold clears. If adjustments are needed, the IRS sends a written notice before changing anything.
The review timeline depends entirely on why the IRS placed the hold.
Does IRS Code 570 Mean Your Refund Is Delayed
Yes. IRS code 570 always causes a refund delay. The length depends on the reason:
- Income mismatch: 2 to 4 weeks in most cases
- EITC or ACTC credit verification: up to 6 weeks from mid-February
- Identity review or CP05 notice issued: 8 to 12 weeks from the notice date
The IRS code 570 refund delay does not mean your refund will be reduced. Most filers with this code see code 846 post after the review ends, and their full refund releases. If the IRS disagrees with part of your return, it sends a separate adjustment notice before changing your refund amount.
What to Do If You See Code 570 on Your IRS Transcript
If you see IRS code 570, you do not need to call the IRS or file any additional paperwork immediately. The IRS handles most holds without needing anything from you. Your focus should be on monitoring your transcript weekly and staying on top of any mail from the IRS.
The IRS transcript refund codes section of your account transcript tells you everything happening on your return in real time.
Steps to Take While the IRS Reviews Your Return
The IRS place code 570 matters less right now than what you do next. Following the right steps prevents unnecessary delays.
- Check your IRS account transcript every week at IRS.gov for new codes or updates
- Watch your mail closely for a CP05, 4464C, or any other IRS notice
- Do not file an amended return (Form 1040-X) unless the IRS explicitly tells you to
- Gather your W-2s, 1099s, and any supporting documents for credits you claimed; keep them ready
- If you receive an IRS notice, respond by the deadline printed on it, not after
- Call the IRS Taxpayer Assistance Line at 800-829-1040 only if 12 weeks pass with no transcript change
The 570 IRS code resolves on its own in most cases. Document readiness and weekly transcript checks are your best strategy right now.
Resolve IRS Code 570 with MD Sullivan Tax Group
IRS Code 570 means your refund is under review, and delays can stretch from weeks into months depending on income mismatches, credit verification, or IRS notices. Acting early, monitoring your transcript, and preparing documentation keep you ahead of the process and prevent unnecessary escalation.
At MD Sullivan Tax Group, we handle direct IRS communication, resolve transcript issues, respond to CP05 or 4464C notices, and protect your refund from delays or reductions using proven IRS resolution strategies. Our expertise ensures your case moves forward without costly mistakes.
Contact MD Sullivan Tax Group today and take control of your IRS situation.
FAQs
IRS code 570, officially "Additional Liability Pending or Credit Hold," means the IRS paused your refund for automated review. The system triggers it when income figures, credit eligibility, or account history require cross-checking against third-party IRS records. Your return stays active; it is not closed or rejected.
Code 570 on the IRS transcript appears for four specific reasons: your W-2 or 1099 income does not match employer-reported data; you claimed EITC or Child Tax Credit, requiring eligibility verification; you have an unpaid balance from a prior tax year; or the IRS detected a possible identity concern on your account.
Yes. IRS code 570 always holds your refund. An income mismatch holds for 2 to 4 weeks. A CP05 identity review takes 8 to 12 weeks from the notice date. Code 570 alone does not reduce your refund. The IRS sends a written notice before making any adjustment to your amount.
The IRS 570 transcript code review runs 4 to 12 weeks, depending on the reason. Income verification holds close in 2 to 4 weeks. If code 971 also appeared and you received a CP05 notice, the IRS has 60 days from that notice date to finish. Responding immediately to any IRS letter shortens the timeline.
No. IRS code 570 is a temporary hold, not a permanent block. Once the IRS finishes its review, code 846 posts and your refund processes. If the IRS adjusts your return, it sends a written notice with the changes before any money is released. Most filers with this code receive their full refund after the review closes.
